Canada’s Trade Surplus Expands to $2.1 Billion in October Amid Jump in Oil, Auto Exports
Canada’s trade surplus widened for the fifth consecutive month in October, as a boost in auto and energy exports sharply outweighed the country’s imports.
According to Statistics Canada data, total exports rose 6.4% to a record $56.2 billion in October, as 8 of the 11 product sections reported gains. The majority of the month’s increase in exports was due to a substantial jump in exports of motor vehicles, which were up 30.8%, even amid the ongoing global semiconductor shortage. Likewise, exports of energy products were also significantly up by 9.8% to a record $13.9 billion, as crude oil exports reached $9.8 billion amid higher prices.
Meanwhile, total imports rose 5.3% to a record $54.1 billion, with gains being observed across 7 of the 11 product sections, as motor vehicles and parts were responsible for nearly two-thirds of the monthly increase. After a 13.8% decline in the month prior, imports of motor vehicles and parts were up 27.2% to $8.5 billion. Following a 14.6% decline in September, imports of energy products rose 14.9%.
The majority of October’s increase in both exports and imports was mostly contributed to trade with the US. Exports to the neighbouring country jumped 6.9% to a record $42.2 billion, while imports rose 9.1% to $33.9 billion, causing Canada’s trade surplus with the US to contract from $8.4 billion in September to $8.3 billion in October.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
